Source:

Product number:

Length:

Also Available in:

description

Winner of a 2013 ecch Case Award

A manufacturer and retailer of specialty doll products must decide which of two projects to fund. The decision requires the student to compute cash flows for the 2 projects, discount values to the present and compare and contrast different project performance measures.

Length:

Also Available in:

description

When students have the English-language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio version.

A diversified mid-sized manufacturer of kitchen tools contemplates a stock repurchase in response to an unsolicited takeover. The company must determine the optimal debt capacity and capital structure, and subsequently estimate the resulting change in firm value and stock price. Attention is also given to the value of interest tax shields.

Length:

Also Available in:

description

When students have the English-language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio version.

In January 2007, West Coast Fashions, Inc., a large designer and marketer of branded apparel, announced a strategic reorganization that would result in the divestiture of their wholly owned footwear subsidiary, Mercury Athletic. John Liedtke, the head of business development for Active Gear, a mid-sized athletic and casual footwear company, saw the potential acquisition of Mercury as a unique opportunity to roughly double the size of his business. The case uses the potential acquisition of Mercury Athletic as a vehicle to teach students basic DCF (discounted cash flow) valuation using the weighted average cost of capital (WACC).

learning objective:

(1) Enables students to develop and combine a set of cash flow projections, an estimate of the weighted average cost of capital, and a determination of the terminal value into a complete estimate of firm value. (2) Examines the valuation of synergies and acquisition premiums.

description

When students have the English-language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio version.

The senior vice president of project finance for a global oil and gas company must determine the weighted average cost of capital for the company as a whole and each of its divisions as part of the annual capital budgeting process. The case uses comparable companies to estimate asset betas for each operating division, and employs the Capital Asset Pricing Model to determine the cost of equity. Students are required to un-lever and re-lever betas and, choose an appropriate risk-free rate, and compute costs of debt and equity.

learning objective:

(1) Familiarize students with WACC and CAPM and associated data and formulas. (2) Consider single vs multiple hurdle rates. (3) Explore the effects of leverage on WACC.

Product number:

Length:

Also Available in:

description

A group of investors is considering buying the sequel rights for a portfolio of feature films. They need to determine how much to offer to pay and how to structure a contract with one or more major U.S. film studios. The case contains cash flow estimates for all major films released in the United States during 1989. These data are used to generate estimates of the value of sequel rights prior to the first film's release. Designed to introduce students to real options and techniques for valuing them. It clearly illustrates the power of option pricing techniques for certain types of capital budgeting problems. Also illustrates the practical limitations of such techniques.

Publication Date:

Discipline:

Product number:

Length:

description

The second release of this simulation adds an optional valuation exercise that introduces students to the valuation techniques used in the simulation. In this multi-player simulation, students each play the role of a CEO at 1 of 3 publicly traded wine producers: Bel Vino, Starshine, or International Beverage. Bel Vino and Starshine consider a merger-of-equals transaction while International Beverage considers acquiring either Bel Vino or Starshine. Students review confidential information to determine value and set reservation prices before negotiating deal terms. Stock prices rise and fall in reaction to the formal bidding process and help create a dynamic and competitive negotiation environment. The simulation is entirely web-based and a built-in chat feature allows students to negotiate privately online. The simulation is ideal as a capstone experience in a first-year MBA Finance course, or for use in elective courses in Finance, Negotiation, or Strategy.

In this single-player simulation, students act as members of the Capital Committee of New Heritage Doll Company, tasked with selecting and allocating capital across the company's three divisions. Students evaluate a diverse set of competing investment proposals and make decisions regarding 27 separate proposals over a five-year period. Students confront a range of project types including replacement investments, expansion investments, investments in mutually exclusive projects, interdependent projects, and projects with growth options. To evaluate them, students examine outlays, cash flow patterns, and common metrics such as NPV, IRR, and Payback, with or without capital constraints. This simulation is appropriate for introductory Finance courses as well as specialized courses in Project Finance, Capital Budgeting, Advanced Corporate Finance, and Accounting. May be appropriate for Strategy and General Management courses in which the topic of resource allocation is explored. This simulation can be used in advanced undergraduate, MBA, and executive education programs.

learning objective:

• Explore the problem of resource allocation within a corporation by looking at many projects from the senior-management perspective. This simulation is a useful complement to capital-budgeting cases that focus on single projects. • Illustrate the impact of capital rationing on capital investment choices. • Exercise and interpret the implication of tools of investment analysis (NPV, IRR, Payback & Profitability Index) • Adjust for risk differences among projects through the use of risk-adjusted discount rates • Understand how capital budgeting rules significantly influence company performance and market position

Revision Date:

Publication Date:

Discipline:

Source:

Product number:

Length:

Also Available in:

description

Magna International, Inc., a Canadian-based automotive parts manufacturer, is considering whether and how to unwind its dual-class ownership structure. A family trust controlled by the founder owns a 0.65% economic interest in the company but has 66% of the votes via a super-voting class of shares. Officers of the company are considering how to fashion a transaction that will end the family's control and win the approval of both classes of shareholders. The Magna (A) case asks the students to weigh the costs and benefits of dual-class ownership and the best way to convert to single-class. The Magna (B) case describes the proposal that Magna's board put to a shareholder vote. Students are asked to evaluate it and decide whether they would approve it.

learning objective:

The Magna (A) and (B) cases are intended to support a general discussion of the costs and benefits of dual-class ownership structures, which are common in many countries. In the specific case of Magna, students are asked to quantify the potential benefits of unwinding a dual-class structure that has been in place for more than 30 years, and to consider how the value created should be divided between two classes of shareholders.

Publication Date:

Discipline:

Source:

Product number:

Length:

Also Available in:

description

Magna International, Inc., a Canadian-based automotive parts manufacturer, is considering whether and how to unwind its dual-class ownership structure. A family trust controlled by the founder owns a 0.65% economic interest in the company but has 66% of the votes via a super-voting class of shares. Officers of the company are considering how to fashion a transaction that will end the family's control and win the approval of both classes of shareholders. The Magna (A) case asks the students to weigh the costs and benefits of dual-class ownership and the best way to convert to single-class. The Magna (B) case describes the proposal that Magna's board put to a shareholder vote. Students are asked to evaluate it and decide whether they would approve it.

learning objective:

The Magna (A) and (B) cases are intended to support a general discussion of the costs and benefits of dual-class ownership structures, which are common in many countries. In the specific case of Magna, students are asked to quantify the potential benefits of unwinding a dual-class structure that has been in place for more than 30 years, and to consider how the value created should be divided between two classes of shareholders.

Revision Date:

Publication Date:

Discipline:

Source:

Product number:

Length:

description

Magna International, Inc., a Canadian-based automotive parts manufacturer, is considering whether and how to unwind its dual-class ownership structure. A family trust controlled by the founder owns a 0.65% economic interest in the company but has 66% of the votes via a super-voting class of shares. Officers of the company are considering how to fashion a transaction that will end the family's control and win the approval of both classes of shareholders. The Magna (A) case asks the students to weigh the costs and benefits of dual-class ownership and the best way to convert to single-class. The Magna (B) case describes the proposal that Magna's board put to a shareholder vote. Students are asked to evaluate it and decide whether they would approve it. Spreadsheet to (211044).

learning objective:

The Magna (A) and (B) cases are intended to support a general discussion of the costs and benefits of dual-class ownership structures, which are common in many countries. In the specific case of Magna, students are asked to quantify the potential benefits of unwinding a dual-class structure that has been in place for more than 30 years, and to consider how the value created should be divided between two classes of shareholders.

*required field. You can change details at any time before activation.

The enrollment number will not limit students' access to materials. Accurate enrollment allows
us to manage site traffic and course activity.

If your course is affiliated with an institution not listed here or you need to create a course to last longer than 6 months,
please contact HBP Customer Service at custserv@hbsp.harvard.edu or 800-545-7685.

Type the information in each box. Boxes marked with an asterisk (*) are required information.
You can change the coursepack information, including the Start and Stop Dates and the quantity,
at any time before you activate the coursepack.

If your coursepack is affiliated with an institution not listed here or you need to create a coursepack
which is longer than 6 months, please contact HBP Customer Service at custserv@hbsp.harvard.edu
or 800-545-7685.